Hi,
Recently I was offered a promotion to a newly created position by senior management. I accepted the role verbally and was told that on my return from annual leave I would commence the role and a new contract would be drawn and presented to me. Whilst on annual leave my promotion was announced at the state managers meeting amongst my peers. Preceding the announcement I was congratulated by my peers.
Whilst on annual leave a higher position than the one that was offered previously became available due to a resignation. I returned from holidays and was advised that it would be a great opportunity to further my career and that the application process would be a learning process. Either way I believed I had nothing to lose and everything to gain as I was already recently promoted. When I questioned why I had not yet received my written contract for the job that was offered and accepted verbally, I was informed that they would provide that to me if I was unsuccessful in the job that I was now applying for. Management explained that there was not point in drawing up the contract if I was successful in the higher position.

I applied for the higher position but was told that I was not successful. I was then advised that management would visit me over the next few days to discuss my contract for the job that was offered earlier. Management then met with me but informed me that the position offered to was no longer available as they believed that in hindsight they should have offered me the role. They believed that the experience and training provided to me from the organisation that they purchased was not in line with the direction that they wanted the business to take. They explained that they did not want to set me up to fail. I argued that they had not yet given me the opportunity to prove to them that I could do the job.

What I don’t understand is why they would offer me a position in the first place if they felt I could not do it! I understand that the higher position I went for was not for me and the business, but I feel their decision to retract the offer to promote (or renege on the verbal contract) was very unfair, not to mention demoralising and humiliating as all my peers have to be told that I am not longer promoted.

Can I take legal action against this sort of thing? How can I make them accountable for their actions so they don't do this again to other employees? And if I take some sort of action would this result in me possibly being managed out?

You did not say where you live, assuming this is in the US,

You had no out of the pocket costs, you did not quit another job, you did not move based upon any verbal agreement. Since there was no written agreement to this, and no terms of a new contract, they are free to change their minds up to the minute you sign the contract.

So based upon the laws and rules here, no you can not sue them, it was not a nice thing to do, but perfectly legal.

Cheers FR-Chuck..

I am from Victoria in Australia. I have been told here in Australia that a verbal contract is as good as a written contract! I understand that I am not out of pocket however potentially I would have been earning a lot more.

What is the law in Australia and do we have rights? Read above and help me out. Any advice is appreciated.

You may be mistakenly using that very common definition of "fair" that many people apply nowadays, it goes something like, "If I don't like or approve of something, or if it makes me feel uncomfortable or sad or angry, it is unfair."

What you've experienced may be humiliating. Unfair? Not at all.

As is probably true in many places, you can legally pursue any course of recompense, but you were treated badly, not unfairly.

I don't think you'll find a "right" to have everything go your way every time. I don't think that's fair, either. It actually sounds to me like you've been treated honestly and above board, that your company wants to honor you, but failed in their attempt. The job they thought you might be good at they no longer believe so, and your upset feelings may cause you to take a course of action that will permanently set them against you. That's unfortunate, in my estimation.

You might even win some legal case, but this company will no longer be a career path for you, which I bet it still is at this point.

Hi J,

Thank you for your honest feedback. I think you might have got me wrong! Compensation is not solely what I am after. This company has been getting getting away with so much lately and it needs to stop. I am fed up with broken promises and the way little man/woman are treated in workplaces today. The only thing that seems to stop companys (humiliating people) is to hurt there pocket. Voices and opinions to them mean nothing.

Hi J,

Thank you for your honest feedback. I think you might have got me wrong! Compensation is not solely what I am after. This company has been getting getting away with so much lately and it needs to stop. I am fed up with broken promises and the way little man/woman are treated in workplaces today. The only thing that seems to stop companys (humiliating people) is to hurt there pocket. Voices and opinions to them mean nothing.

What you went through is extremley common in the U.S. I see it all the time with top bankers, teachers, construction, and state workers, not to mention all the dot com companies that are suffering from the economic turn. It is stressful, but not uncommon.

All you can do is continue on with the company or find another job. A lawsuit will most likely change nothing and give you more professional trouble in your current or future job.

Yeah that's the plan Rosemcs. When I typed this up I was very angry and upset. Right now with all the feedback I have received from all has helped me come to terms with it all. I am going to continue to be positive and not be a victim. In time things will work out! It always does.